I Get into a Lot of Trouble When Making Big Decisions – Ruto’s Take on Loans
President William Ruto has committed to reducing borrowing despite the country’s financial challenges.
During a July 20 engagement, Ruto emphasized that the nation could no longer rely on loans for growth.
He acknowledged that many advised continued borrowing but reiterated his responsibility to make the right decisions for Kenya.
Ruto highlighted that Kenya is currently paying Ksh1.1 trillion in loan interest, a concerning trend.
“I face significant challenges when making major decisions. We cannot keep borrowing. Today, we pay Ksh1.1 trillion in interest alone, not even the principal.
“Some advocate for continued borrowing, but I cannot. Let them call me Zakayo,” he said.
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The President assured that Kenyans would eventually see the benefits of his decisions.
“When history is written, it will vindicate those who made the right choices,” he affirmed.
Kenya’s debt is a major concern for its citizens, a topic raised during ongoing protests. As of March 31, the country’s debt stood at Ksh10.39 trillion.
Most debt is owed to commercial lenders, with domestic debt at Ksh5.235 trillion and external debt at Ksh5.163 trillion.
Notably, the external debt portfolio decreased by Ksh490 billion in early 2024, due to the strengthening of the shilling against the dollar.
“Debt owed to bilateral creditors decreased by Ksh116.49 billion, multilateral debt by Ksh244.60 billion, commercial debt by Ksh118.80 billion, and publicly guaranteed external debt by Ksh10.58 billion,” the report stated.
Loan Audit
In response to recent protests, Ruto appointed a team to audit the national debt.
Led by Former IMF Director of Internal Audit, Nancy Onyango, the team will assess Kenya’s actual debt and investigate the use of borrowed funds.
“Given the current debt burden, the need for fiscal consolidation, and limited fiscal space, the team will recommend alternative financing sources for development in the short and medium term and any debt reorganization plan,” the gazette notice outlined.
The team is expected to report back in three months.
I Get into a Lot of Trouble When Making Big Decisions – Ruto’s Take on Loans
